Russia, Azerbaijan, and Iran Bolster North-South Transport Corridor Collaboration

Trilateral Efforts to Enhance Connectivity

Russia, Azerbaijan, and Iran are significantly advancing their collaboration on the International North-South Transport Corridor (INSTC), a crucial multimodal network designed to facilitate freight movement across Eurasia. This intensified cooperation was highlighted by a recent joint visit to border infrastructure and high-level trilateral meetings held in Baku, Azerbaijan, on October 13, 2025, followed by a border inspection on October 14, 2025.

The Russian delegation was led by Deputy Prime Minister Alexei Overchuk, while Azerbaijan was represented by Deputy Prime Minister Shahin Mustafayev, and Iran by Minister of Roads and Urban Development Farzaneh Sadegh. Their discussions focused on the construction of vital road, rail, and customs infrastructure, alongside strategies to eliminate bottlenecks and enhance the corridor's overall capacity.

Ambitious Freight Targets and Infrastructure Development

A primary outcome of these meetings is the ambitious target to increase freight traffic along the North-South corridor to 15 million tonnes annually by 2030. To achieve this, the three nations have agreed to establish a joint working group tasked with preparing an action plan within the next three months, aimed at developing the western route of the INSTC.

A key focus of the infrastructure development is the completion of the Rasht-Astara railway line in Iran, often referred to as the 'missing link' of the INSTC. Iran's Minister Sadegh confirmed that land acquisition for approximately half of the 160-kilometer route has been finalized, with Russia providing financing and construction support for the project. Officials also inspected existing infrastructure, including the automobile bridge over the Astarachay River and the South Freight Terminal in Astara, Iran, which is owned by Azerbaijan Railways and has plans to expand its annual transshipment capacity from 1 million to 5 million tons.

Streamlining Operations and Broader Significance

Beyond physical infrastructure, the trilateral talks emphasized streamlining operational aspects. Plans include establishing a special working group for road transport, comprising representatives from customs, border, and transport authorities, and developing a shared digital platform to simplify clearance processes and improve coordination.

The INSTC, a 7,200-kilometer multi-mode network, was initially established in 2000 by Russia, India, and Iran, with Azerbaijan joining later. It connects major cities such as Mumbai, Moscow, Tehran, and Baku, offering a route that is reportedly 30% cheaper and 40% shorter than traditional maritime routes via the Suez Canal, potentially reducing transit times from over six weeks to just three. The corridor serves as a vital alternative for trade, with Russian authorities reporting a 19% increase in total cargo via the corridor in 2024, amounting to approximately 26.9 million tons. Azerbaijan alone saw 9.8 million tons of cargo transported through its section of the North-South Corridor in 2024.

Commitment to Future Growth

The recent meetings underscore the participating nations' commitment to leveraging the INSTC for enhanced economic integration and trade. The establishment of coordination mechanisms and the focus on key infrastructure projects like the Rasht-Astara railway are expected to significantly boost the corridor's efficiency and capacity, solidifying its role as a critical artery for Eurasian trade. The parties expressed confidence that continued joint efforts will ensure the sustained growth of freight flows and foster greater regional prosperity.